Mazda wants to “shatter the idea that small cars have less value than larger ones” with the latest version of its smallest global model, the 2 (Demio in Japan) which is just being introduced to Europe after scooping up the Japanese Car of the Year award in 2014.

Left hand drive versions are now produced in Mexico instead of at Mazda’s main plant in Hiroshima while right hand drive versions come from Thailand.

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Mazda is aiming for 200,000 sales of the new 2 in 2015, which would be a 15% improvement on last year’s 175,000 with the old model. Europe is expected to contribute around 20% of the total – about 40,000 – led by Germany and the UK.

The UK proved to be particularly fertile sales ground for the outgoing model right up to the end of production, largely because the British importer spotted the potential last year, ordered extra production and came up with the right offers to attract buyers.

The new 2 is yet another model built with the automaker’s Skyactiv architectures and powertrains, leaving the 5 minivan/MPV as the odd man out in Europe. The 2 introduces new 1.5-litre petrol (three variations) and diesel engines while new electrical systems allow technology rare in or new to the B segment to be offered.

A head-up display, connectivity, automatic high beam adjustment, lane departure and blind spot warnings, cross traffic alert and automatic emergency braking at city speeds are all available.

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The redesigned car is considerably longer and a bit taller than its predecessor on a stretched wheelbase but weighs no more because of extensive use of advanced steels in the body in white.